North Carolina Down Payment Support Systems

Payments Gateway - These programs are the Down Payment Assistance Program as well as the Mortgage Credit Certificate.

Should you meet the requirements for one of the plans and also you purchase a house between December 1, 2009 and January 1, 2009, you may also be eligible for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a house within the past three years. It is the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability depending on a percentage of the mortgage interest which you pay.

In case you are eligible for the MCC, you are able to claim 20% of the interest you pay as a credit on your federal income taxes on your mortgage. It is possible to save around $2,000 on your taxes.

You will find a way to join this with the $8,000 tax credit, should you qualify for 2009. This might reduce a buyer's tax liability .

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and any man expected to reside in the home who's 18 years old or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are listed below.

MCC Income Limits 1 Man $61,500 2 Men $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Price Limitations New Dwelling $220,000 Existing Home $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their down payment and closing costs may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The buyer just has to pay and the load would pay up to $8,000 of the remaining balance.

This plan has stricter income limitations than the MCC program summarized above. Like the MCC application, it may be used in conjunction with all the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit assistance, however, can not be applied together with the MCC. This is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Residence $210,000